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Technology Stocks : Ericsson overlook? -- Ignore unavailable to you. Want to Upgrade?


To: Mika Kukkanen who wrote (3049)3/25/1999 2:57:00 PM
From: Devil's Advocate  Read Replies (1) | Respond to of 5390
 
Is there something to the rumor that Ericsson will buy FORE?

If you ask me, that's make a lot of sense to get in ATM technology.



To: Mika Kukkanen who wrote (3049)3/26/1999 7:46:00 AM
From: P2V  Respond to of 5390
 
Good Day to All ! (probably same old news -- I'll post them
as I receive them)
-------------------------------------------------------
This is an extra issue of Mobile Next sent out due to the importance
the following news.
You will recieve issue 5.99 next week as scheduled.Ericsson and
Qualcomm reach global CDMA resolution
-------------------------------------------------------
A new agreement between Ericsson and Qualcomm paves the way for 3G -
the
next generation of global mobile telephony

Ericsson has entered into a series of definitive agreements with the
U.S. company Qualcomm that will resolve all disputes globally between
the companies relating to Code Division Multiple Access (CDMA)
technology.

One standard, three optional modes

Under the agreements, Ericsson and Qualcomm agree to jointly support a
single world CDMA standard with three optional modes for the next
generation of wireless communications; to enter into cross licenses for
their respective patent portfolios; and to settle the existing
litigation between the companies.
The cross licenses are royalty bearing for CDMA subscriber units sold
by
either party. In addition, Ericsson will purchase Qualcomm's
terrestrial
CDMA wireless infrastructure business, including its R&D facilities,
located in San Diego, California, and Boulder, Colorado. Ericsson also
will assume select customer commitments, including a portion of vendor
financing obligations, related assets and personnel. The agreements are
subject to necessary regulatory approvals and other customary
conditions.

Settlement of litigation

The agreement settles the litigation between Ericsson and Qualcomm and
provides for cross licensing of Intellectual Property Rights (IPRs) for
all CDMA technologies, including cdmaOne, WCDMA and cdma2000.
Qualcomm will also receive rights to sublicense certain Ericsson
patents, including the patents asserted in the litigation, to
Qualcomm's
Application Specific Integrated Circuits (ASICs) customers.

Joint support of the ITU

The companies have also agreed to jointly support approval by the
International Telecommunications Union (ITU) and other standards
bodies,
including the U.S. Telecommunications Industry Association (TIA) and
the
European Telecommunications Standards Institute (ETSI), of a single
CDMA
3G standard.
This standard encompasses three optional modes of operation:

* Direct sequence FDD
* Multi-carrier FDD
* TDD

Each mode supports operation with both GSM MAP and ANSI-41 networks.

Ericsson and Qualcomm believe that rapid adoption of the single CDMA
standard is in the best interests of the industry and allows each
operator to select which mode of operation to deploy based on
marketplace needs. As part of the agreement, the companies will each
commit to the ITU and to other standards bodies to license their
essential patents for a single CDMA standard or any of its modes to the
rest of the industry on a fair and reasonable basis free from unfair
discrimination.

The companies will notify the ITU and other relevant standardization
entities of the agreement to remove all IPR blocking currently in
force.

The grants of licenses and the settlement of all litigation, as well as
the commitment to standards bodies to license their essential IPRs,
will
become effective upon closing of the purchase of Qualcomm's terrestrial
CDMA wireless infrastructure business.

Ericsson ideally positioned for 3G

"With the resolution of 3G and the cross-licensing of our patents,
Qualcomm and Ericsson have paved the way for the expansion of global
CDMA-based wireless communications," says Irwin Mark Jacobs, chairman
and chief executive officer of Qualcomm.

"Ericsson's purchase of our infrastructure division underscores its
commitment to CDMA, and allows Ericsson, one of the world's leading
telecommunications equipment manufacturers, to expand its CDMA
capabilities. Qualcomm can now focus on its core businesses, including
CDMA phones and chip sets, the Globalstar and OmniTRACS systems and new
opportunities in digital cinema, wireless data and Eudora web products
and services."

"Ericsson, through its agreement with Qualcomm - a pioneer in
developing
CDMA technologies - now has complete 3G competence," says Sven-Christer
Nilsson, president and chief executive officer of Ericsson. "We are
ideally positioned to support any operator anywhere in the world to
migrate to 3G regardless of technology heritage or technology choice."

Current and future CDMA markets

Qualcomm's terrestrial CDMA wireless infrastructure research and
development and manufacturing division comprises infrastructure for
cellular, PCS and wireless local loop. The acquisition provides
Ericsson with leading CDMA research and development, including the
cdmaOne and CDMA2000 product lines that Ericsson will further develop
and market. Ericsson will establish a global CDMA center in San Diego,
California.

"With the addition of cdmaOne and cdma2000, we will be well positioned
to serve current and future CDMA markets, including the fast growing
CDMA handset market," says Nilsson. "By combining this competence with
our industry-leading capabilities in WCDMA, we intend to play a leading
role in the converged world of wireless data services."

Qualcomm will incur a one-time charge in connection with the
transactions contemplated by the agreements, the details of which it
anticipates will be available when the Company announces results for
its
third fiscal quarter ending March 31, 1999.

Related links:

* Ericsson Pressroom - ericsson.se
* Qualcomm - qualcomm.com

Questions and answers on the agreement between Ericsson and Qualcomm
-------------------------------------------------------
Does this mean that the 3G-harmonization debate is over?

No, but the blocking of IPRs is over. 3G standardization work will
continue in accordance with the procedures and timeframe of the ITU and
regional standardization bodies, along the way taking into account many
valuable contributions from operators. Our agreement with Qualcomm
removes any blocking of IPRs relating to all CDMA technologies with
both
Ericsson and Qualcomm committing to offer our IPRs on fair, reasonable
and non-discriminatory terms. At Ericsson, we are very enthusiastic and
optimistic that this represents a major breakthrough in paving the way
for the conclusion of standardization work with a globally harmonized
3G
standard with three optional modes to cater for the interests of the
entire wireless industry.

Will you be making new compromises on the chip rate issue beyond the
3.84 Mcps proposal in support of dual-band phones that Ericsson put
forward last December?

It is not our intention to do so because we do not think any further
reductions of the chip-rate would bring any further benefit in a
multi-standard environment. Apart from this, we do not think we should
foreclose any of the standardization work.

How does this affect Edge?

Edge will continue to be developed and supported by Ericsson as we have
always stated. Edge is not affected by this agreement.

How do you explain your earlier negative view of IS-95?

We have consistently claimed that IS-95 does not offer more to
customers
than
TDMA - and we still do. Our focus with this acquisition is on 3G with
wideband technology and new market opportunities for Ericsson.

But now you will also support and market IS-95?

Yes, and our key interest is the market opportunity and the
technological expertise that we gain for the multi-carrier evolution
from IS-95 into cdma2000.

Why are you buying Qualcomm's infrastructure division?

We are acquiring these QC operations for commercial reasons to leverage
our global leadership in wireless technologies as 3G starts to come to
market. This offers us the possibility of a wider and faster
development
of our 3G offering.

You have been in fierce competition so far. How do you expect to
suddenly
integrate your activities?

First of all, we see a good fit between our organizations. What we gain
are key competencies in multi-carrier R&D. Together with Ericsson's
global market presence and our range of product platforms we can now
integrate cdma2000 technology and gain in time-to-market and
economies-of-scale in CDMA development and product supply.

How does this fit into your overall strategy?

Qualcomm's infrastructure division represents an obvious fit with our
strategy of maintaining undisputed leadership in wireless systems
technologies independent of system standard. Qualcomm complements by
adding new cdma2000 competence as well as R&D resources.

What does this mean for Ericsson's existing TDMA and GSM customers?

Nothing, since our commitment to customers with TDMA and GSM systems
remains unchanged and strong. The added technology skills that Ericsson
acquires will benefit all our customers.

Copyright and Editorial Information
-------------------------------------------------------
© Copyright 1999 Ericsson

Mobile Next is an Ericsson publication produced in cooperation with
Appelberg Publications AB, Stockholm, Sweden.

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